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Feds sue Fiat Chrysler, accuse it of cheating on diesel emissions
Tue, May 23 2017WASHINGTON - The US government has filed a civil lawsuit accusing Fiat Chrysler Automobiles NV of using software to bypass emission controls in diesel vehicles. The Justice Department suit, filed in US district court in Detroit, is a procedural step that may ramp up pressure on Fiat Chrysler. The suit could ultimately help lead to a settlement, as in an earlier probe of rival Volkswagen AG that will cost VW up to $25 billion, but which affected a much larger number of vehicles. VW admitted to intentionally cheating while Fiat Chrysler denies wrongdoing. It did not immediately comment on Tuesday. US-listed Fiat Chrysler shares were down 2.9 percent at $10.44. The suit also names Fiat Chrysler's unit V.M. Motori SpA, which designed the engine in question. Reuters reported last week the Justice Department and EPA have obtained internal emails and other documents written in Italian that look at engine development and emissions issues that raise significant questions. The investigation has scrutinized VM Motori. FCA acquired a 50 percent stake in VM Motori in 2010 and the remainder in October 2013. The lawsuit asserts the Italian-American automaker placed undeclared "defeat devices," or auxiliary emissions controls, in 2014-2016 Fiat Chrysler diesel vehicles that led to "much higher" than allowable levels of nitrogen oxide, or NOx pollution, which is linked to smog formation and respiratory problems. The suit seeks injunctive relief and unspecified civil penalties. EPA said in January the maximum fine is about $4.6 billion. In January, EPA and California accused Fiat Chrysler of illegally using undisclosed software to allow excess diesel emissions in 104,000 U.S. 2014-2016 Jeep Grand Cherokees and Dodge Ram 1500 trucks. Fiat Chrysler said on Friday it plans to update software that it expects will resolve the concerns of U.S. regulators about excess emissions in those vehicles. The January notice was the result of regulators' investigation of rival Volkswagen, which prompted the government to review emissions from all other passenger diesel vehicles. Volkswagen admitted in September 2015 to installing secret software allowing its cars to emit up to 40 times legal pollution levels. In total, VW has agreed to spend up to $25 billion in the United States to address claims from owners, environmental regulators, states and dealers and offered to buy back about 500,000 polluting US vehicles.
Stellantis mega-merger gets approval from FCA, PSA shareholders
Mon, Jan 4 2021MILAN — Shareholders of Fiat Chrysler and PSA Peugeot decisively voted Monday to merge the U.S.-Italian and French carmakers to create worldÂ’s 4th-largest auto company. Addressing separate meetings, both PSA Peugeot CEO Carlos Tavares and Fiat Chrysler Chairman John Elkann spoke of the “historic” importance of the vote, which combines legacy car companies that helped write the industrial histories of the United States, France and Italy. Before the merger is finalized, shares in the new company, to be called Stellantis, must the launched. It will be traded in Milan, New York and Paris. The marriage of PSA Peugeot and Fiat Chrysler Automobiles is built on the promise of cost-savings in the capital-hungry industry, but what remains to be seen is if it will be able to preserve jobs and heritage brands in a global market still suffering from the pandemic. The deal will create the worldÂ’s fourth-largest carmaker, with the capacity to produce 8.7 million cars a year, behind Volkswagen, Toyota and Renault-Nissan, and create 5 billion euros in annual synergies. “We are fully aware of the fact that together we will be stronger than individually,'' PSA CEO Carlos Tavares told a virtual gathering of eligible shareholders. “The two companies are in good health. These two companies have strong positions in their markets.” The new company will put together under one roof French mass-market carmakers Peugeot and Citroen, top-selling Jeep and Italian luxury and sports brands Maserati and Alfa Romeo - pooling companies that have helped define the industry in the United States, France and Italy. While the tie-up is billed as a merger of equals, the power advantage goes to PSA, with Tavares running Stellantis and holding the tie-breaking vote on the 11-seat board. Tavares is set to take full control of the company early this year, possibly by the end of January. Fiat Chrysler chairman John Elkann, heir to the Fiat-founding Agnelli family and Fiat ChryslerÂ’s biggest shareholder, will be the Stellantis chairman. Fiat Chrysler CEO Mike Manley will head North American operations, which is key to Tavares' long-time goal of getting a U.S. foothold for the French carmaker he has run since 2014, and the clear money-maker for Fiat Chrysler. Such a deal was long wanted by Fiat ChryslerÂ’s long-time CEO Sergio Marchionne, who had predicted the necessity of consolidation in the industry. He was unable to find a deal before his sudden death in July 2018.
US Postal Service going Ram ProMaster
Wed, Sep 30 2015Selling cars, vans, and trucks one at a time is business good enough to keep most automakers solvent, but fleet sales are where it's really at. Take this latest order placed by the United States Postal Service from Fiat Chrysler Automobiles, for example. The order calls for a massive fleet of 9,113 units of the 2016 Ram ProMaster 2500 cargo van. That number may only be a drop in the bucket compared to the 190,000 vehicles the Postal Service operates across the country, but it's still a pretty large order to place all at once. "While each and every one of our fleet customers is important to us, none command our attention like USPS," said FCA's fleet operations director Tim Kuniskis. "I can't think of another more mission-critical service than literally delivering the goods of our nation on a daily basis, and we are honored that USPS chose the Ram ProMaster to help them meet their challenging duty." Naturally, each of the 9,113 Ram vans will be specially equipped for the purpose of collecting and delivering the mail and packages. They'll also be fitted with 3.6-liter Pentastar V6 engines driving 280 horsepower and 260 pound-feet of torque through six-speed automatic transmissions to the front wheels. It's the latter feature which the post office may find the most compelling, helping the vans get traction regardless of the weather. You know, given the whole "neither snow nor rain nor heat nor gloom of night" thing that the service seeks to uphold. Related Video: FCA US LLC TO SUPPLY 9,113 NEW 2016 RAM PROMASTER VANS TO U.S. POSTAL SERVICE - Ram Commercial to supply 9,113 new 2016 Ram ProMaster 2500 cargo vans to U.S. Postal Service - Ram ProMaster 2500 is a highly customizable van designed to exceed the demands of commercial customers - Customized outfitting for national mail and package delivery service - Segment exclusive front-wheel-drive system enhances all-weather operation September 29, 2015 , Auburn Hills, Mich. - FCA US LLC announced today that it will supply 9,113 new 2016 Ram ProMaster 2500 cargo vans to the United States Postal Service (USPS). The 2016 Ram ProMaster 2500 cargo van selected by USPS features the award-winning, gasoline-fueled 3.6-liter Pentastar V-6 engine rated at 280-horsepower output with peak torque of 260 lb.-ft. The engine is paired with a proven, smooth-shifting, six-speed automatic transmission, upgraded to accommodate the ProMaster's exceptional cargo-hauling capability.